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Calculate: (60 points) A- Given that We=.6 and Wd= .4 and t=.25 and the betas for a company's bond (.5), and common equity (1.9), calculate

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Calculate: (60 points) A- Given that We=.6 and Wd= .4 and t=.25 and the betas for a company's bond (.5), and common equity (1.9), calculate required returns in an environment where the risk free rate is 1% and a 9% is the return to the market portfolio. B- Now calculate the WACC, and use the answers to A (above) in C, D, E, and F below C- Given a 5% coupon, and a 10 year maturity date, what is the bond's value? D- Suppose a common stock will pay a $3 dividend next year and is expected to grow at 4% annually, what is its value? E- Given these cash flows and Initial Cost Outlay, calculate IRR Year 0.. -$1,000,000 Years 1,2.. $700,000 Years 3,4,5 $300,000 F- Given the above appropriate discount factor, calculate NPV and decide whether to approve the project

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